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Mayhem as Election Ends with Hung Parliament

June 9, 2017 12:13 pm Published by

Disaster struck for the Conservative Party overnight as Labour exceeded expectations resulting in Britain waking up to a hung parliament today.

With all the results nearly in, the BBC are predicting Tories with 319 seats, Labour 261 and 13 for Liberal Democrats.

Amongst the uncertainty, Sterling has fallen to a seven-month low against the Euro and is currently trading at 1.13 and 1.27 against the US Dollar – around a 2% fall.

A fall in the Pound tends to – and has – boosted the FTSE 100 up by 0.9%. This is because the majority of companies in the FTSE 100 have major operations overseas so a weaker Pound means a better exchange rate when you convert the currency back to GBP.

Shares in UK companies that make their money in Britain were badly affected by the election result. Housebuilding companies saw falls up to 5% and retailers were affected because a weaker Pound, means the goods they import are more expensive.

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This post was written by Kayleigh Driscoll

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